Canada’s top banker suggests the housing market could be headed for trouble in parts of the country where home prices are high.
In an interview airing Saturday on CBC Radio’s The House, Carney told host Evan Solomon there are “issues in some segments” of the housing market but stopped short of saying a housing bubble exists in Canada.
“There are issues particularly in some parts of the country, in the condo market, without question, where activity has been particularly strong … and in some of our major cities, without question, evaluations are extremely firm,” Carney said.
Source: news.ca.msn.com
We could be heading for trouble? Nicole Foss was on the Mas Keiser show over a year ago warning about this.
I personally do not think the housing bubble will “pop” in a degree of 90% as Nicole states, but we are going to experience a severe crisis.
In December of 2011 this article was published in the Toronto Star.
Canadian house prices overvalued by 10 per cent, IMF warns
“The International Monetary Fund says Canadian house prices are over-valued by about 10 per cent, and more so in some areas.
The Washington-based monitor also said Canada is facing risks both at home and abroad as the global economy slows.
Record-high household debt and an overheated housing market are among those risks, it stated..”
Source: thestar.com
I have been watching this situation unfold since 2008. Canada’s housing bubble was not adverted, but rather delayed.
Couple this with the fact that average household debt is at a record high (148% of income), Moody’s has already lowered Ontario’s credit rating from triple A to double A, and we are now already facing austerity cuts.
Well lets just say the Canadian economic situation is not a rosy as the politicians like to make it out to be.
Not an expert in finance. In a real free market supply and demand would seem to dictate price of anything. Unless of course, banks make low mortgage rates available to people who really can’t afford such a mortgage. The problem with buying a house in a ‘bubble’ or buying high is if the economy goes south, inflation occurs, the banksters may raise the interest rates on loans to such an extent that those who got mortgages may not be able to afford them and the homes will be worth less than what they morgaged for. We all need to try to lessen and get out of debt. Make do without things not necessary. I’m afraid the banksters may have some rude awakenings in store for us soon so tread carefully. Cautious as serpents. Innocent as doves.